L Brands (LB)

L Brands (LB)

Postby winston » Mon Jul 20, 2015 6:57 pm

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7 Consumer Stocks Primed For Growth: L Brands (LB)

Speaking of sweet and yield, L Brands (LB) — owner of upscale brands Bath & Body Works, Victoria’s Secret, PINK, La Senza, Henri Bendel — also has a nice 2.3% yield.

The most iconic of its brands is of course Victoria’s Secret, which is a marketing machine. From its annual star-packed televised fashion show that complements the Super Bowl to its provocative ads, its visibility is broad.

And with its PINK stores, it’s now able to gain access to a younger audience and move them through the entire brand group. PINK is for younger teens and Millennials that are looking for a hip fashion statement without a premium price.

In recent quarters LB’s Bath & Body Works has been the most successful segment with comparable sales up 6% last quarter. June same-store sales were up 3%.

Margins rose across the brands and inventory per square foot was down in it stores.

As consumers have more money in their pockets, they’ll be looking to splurge or simply buy more premium products. LB is in prime position to capitalize and this sector will be leveraged to a stronger economy. And right now it’s well priced given its growth potential — and its nice dividend.

Source: Investor Place
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Re: L Brands (LB)

Postby winston » Sun Feb 21, 2016 9:36 am

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LB: L Brands Inc Isn’t as Sexy as It Used to Be

This high-profile clothing retailer is losing its allure

By Louis Navellier

Source: Blue Chip Growth

http://investorplace.com/2016/02/lb-not ... skUCZx96M8
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Re: L Brands (LB)

Postby winston » Fri May 06, 2016 9:15 pm

Retailer L Brands (Bath & Body Works, Victoria's Secret) tumbles to a new 52-week low
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Re: L Brands (LB)

Postby winston » Tue Aug 22, 2017 7:46 pm

MORE LOWS FOR THIS TROUBLED RETAILER

Today's chart highlights the continuing struggles at a top retailer...

It has been a painful two years for retail stocks. We've seen this industry-wide trend with stocks like mall operator Tanger Factory Outlet Centers (SKT), jewelry store Signet Jewelers (SIG), and auto-parts retailer Advanced Auto Parts (AAP). But today, we'll check in on another struggling retailer...

Apparel and beauty-products supplier L Brands (LB) owns some valuable brands, including Victoria's Secret and Bath & Body Works. But lately, Victoria's Secret has been dragging the company down. And that trend has continued...

Last month, sales at Victoria's Secret fell 10% from the same period last year. It was the 11th consecutive month of falling sales at its stores.

As you can see below, shares have followed suit. They're down more than 60% from their November 2015 peak and are now trading at a new multiyear low. Until L Brands figures out how to stop the bleeding, stay far, far away...

Source: Daily Wealth
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Re: L Brands (LB)

Postby winston » Sat Mar 17, 2018 2:28 pm

Dirt Cheap Stocks That Will Make Value Investors Fall in Love: L Brands (LB)

Much like Foot Locker, L Brands Inc (NYSE:LB) was once considered one of the few survivors of the retail apocalypse.

Investors viewed LB’s flagship Victoria’s Secret and Bath & Body Works stores as having secular appeal and strong enough brands to fend off competition.

For a while, this was true. But then LB decided that Victoria’s Secret would exit the swim and apparel categories. This happened at the same time that there was this secular shift away from “bombshell beauty” and towards “natural beauty”, a trend which ran counter to Victoria’s Secret line-up of push-up bras. All together, comparable sales at Victoria’s Secret tumbled and dragged LB stock down.

Now, with the swim and apparel exit in the rear-view mirror, those comps are starting to rebound. Victoria’s Secret reported comparable sales growth of 4% in January, the biggest comparable sales gain since November 2016.

Comps are still negative on a 2-year basis, which speaks to the trend away from bombshell beauty, but currently positive comps speak to the fact that regardless of secular trends, women will still always shop at Victoria’s Secret for intimates.

Meanwhile, Bath & Body Works has been resoundingly strong during the whole Victoria’s Secret transition. Comps at Bath & Body Works rose 13% in January, on top of a 12% increase a year ago.

So L Brands is still the company behind two brands with secular appeal. Bath & Body Works has been strong for the past several years, while Victoria’s Secret is just now getting its groove back after an ugly transition period.

Positive comps at Victoria’s Secret and Bath & Body Works, coupled with improving margins and tax cuts, should drive at least 10% earnings growth over the next several years.

LB stock is trading at just 13-times forward earnings for that 10% growth. That is pretty cheap, especially considering the dividend yield is right around 5.5%.

Source: Investor Place
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Re: L Brands (LB)

Postby winston » Fri Mar 23, 2018 9:41 pm

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Stocks to Buy on the Dip : L Brands (LB)

Is this the end of an era? Has Leslie Wexner lost his touch as Mickey Drexler did at J. Crew? That’s certainly a possibility if investor sentiment for L Brands Inc (NYSE:LB) is any indication.

Down 34% year to date, Wexner’s working on a third consecutive year of negative returns, which has killed its long-term performance. LB is trading within 11% of its five-year low of $35.00.

The reason?

Victoria’s Secret isn’t the store it used to be. Loyal customers are going elsewhere for their bras and underwear because it’s either cheaper, fits better or both. No longer is it the go-to place to buy your bras. That’s not good because consumers are very fickle; once they leave, it’s hard to get them back.

However, despite the company’s gloomy outlook for 2018, it still expects to make $3.10 a share, which is a forward P/E of 12.8 at current prices. The well below the $3.43 analyst estimate, it’s possible LB will do better than expected as a result of the corporate tax rate cut.

Also, Bath & Body Works continues to do well — same-store sales were up 5% in 2017 — both in-store and online.

LB stock hasn’t been this cheap in a decade. Despite significant issues at Victoria’s Secret, I’d consider a speculative bet on its stock.

Source: Investor Place
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Re: L Brands (LB)

Postby winston » Fri Jul 27, 2018 11:58 am

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Downtrodden Stocks to Buy on the Dip: L Brands (LB)

I feel for anyone who bought L Brands (NYSE:LB) stock last Christmas; if you’re still holding you’re down 50% in less than seven months, 14% of that drop in the past month alone.

Why in god’s name would I recommend investors buy on the dip when it’s obvious Victoria’s Secret is a broken brand?

“June sales showed VS struggling to drive traffic even when in semi-annual sale mode,” Jefferies analyst Randal Konik wrote in a July 12 note to clients.

“The company admitted traffic was soft so the sale was extended and prices reduced further. We believe this all means the brand is broken.”

Business is so bad for Victoria’s Secret, Konik sees LB stock dropping into the low $20s over the next 12 months.

Leslie Wexner is a retailing icon. I don’t believe he’s going to go away without fixing his legacy buy — he paid around $1 million for Victoria’s Secret in 1982 — but certainly, Aerie and others are giving the once-untouchable brand fits.

While Victoria’s Secret might be floundering, it’s still managing to generate $1.3 billion in operating cash flow annually, which is a miracle considering how badly its legacy brand is performing.

I think Konik’s got a chance to be right about LB. That said, in five years, $30 is probably going to look very cheap. I just don’t see Wexner failing to right the ship.

Source: Investor Place
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